Castle Rock Investment Company

Independent Guide, Trusted Partner.

Paying Plan Expenses

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This is a good time to review which expenses may be paid by plan assets.

Administrative Fees may be paid by plan assets:
  • Form 5500 preparation (including audit)
  • Mandatory amendment fees
  • IRS determination letters
  • Plan testing
  • Document maintenance fees
  • Distributions fees
  • Loan origination fees
Settlor Fees may not be paid by plan assets:
  • Plan establishment (document drafting)
  • Discretionary amendment fees
  • Plan termination
  • Ordinary business expenses
  • Correction program fees (preparation, submission, or penalty fees)
Remember that ongoing investment consulting fees may be paid by plan assets.  Please review the six hypothetical fact patterns detailed at www.dol.gov/ebsa/regs/AOs/settlor_guidance.html for more information.